EnerSys (NYSE: ENS) announced plans to close its lead-acid battery manufacturing facility in Tijuana, Mexico, and transfer production to its Springfield, Missouri plant as part of a manufacturing restructuring initiative.

The company will transition production to its existing Thin Plate Pure Lead technology facility in Missouri, which produces batteries for data center applications. EnerSys expects to incur a pre-tax charge of approximately $37 million when the restructuring is completed, with the majority expected by the second half of fiscal year 2027.

The restructuring costs include $14 million in non-cash charges primarily from equipment write-offs and $23 million in cash charges for severance, decommissioning and facility cleanup. The company projects annual pre-tax benefits of approximately $20 million beginning in fiscal year 2028.

"The closure of our Tijuana facility and the transition of production to Springfield, Missouri will enable us to optimize our cost structure, maximize near-term advanced manufacturing production tax benefits, and mitigate future risks associated with potential tariffs," said Shawn O'Connell, president and chief executive officer.

EnerSys manufactures stored energy solutions for industrial applications including telecommunications, data centers and electric vehicles. The company operates through four business lines: Energy Systems, Motive Power, Specialty and New Ventures.

The information is based on a company press release statement.